SunSirs: Formic Acid Has Limited Upside Potential

Price Trend

According to the SunSirs Commodity Market Analysis System, domestic formic acid prices have remained stable recently. As of April 13, the SunSirs benchmark price for 85% industrial-grade formic acid stood at 3,000 RMB/ton—a month-on-month increase of 15.38% and a year-on-year decrease of 11.76%.

Market analysis

The supply-and-demand market was relatively balanced

On the supply side, market availability remains ample; most formic acid manufacturers have resumed production. Although they have not yet fully returned to full-capacity operations, their overall supply capability is sufficient to meet market demand. Furthermore, the fact that overall industry inventory levels remain low provides a certain degree of support for price stability.

Demand side performance has been lackluster. Domestic downstream enterprises exhibit weak purchasing interest, focusing primarily on acquiring goods and replenishing stocks solely to meet immediate, essential needs; there has been no evidence of large-scale, centralized purchasing activity, resulting in limited upward momentum for market prices. Nevertheless, the export market retains some residual strength, with export orders providing periodic support to market conditions. Driven by the interplay of these various factors, the market as a whole is currently exhibiting a stable operational trend.

Market Outlook:

In summary: As of April 13, four key factors—ample market supply, sluggish domestic demand, export support, and low inventory levels—have interacted to keep formic acid prices stable. Although prices remain at elevated levels, upside potential is limited; consequently, formic acid prices are expected to be stable and weak.

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